Case Study: Learning about Bulgarian VAT Rules on Destroyed Goods

In some sectors, understanding the taxation rules of destroyed goods is essential for operating smoothly. A case in Bulgaria shows that oftentimes it is worth focusing on the implications of input tax adjustments.A recent European count of justice ruling highlights some of the most problematic areas of destroyed goods reporting. A telecommunications company that acquired electronic devices for its business reported that some of these devices were unsellable due to wear and tear, defects, or other issues. By claiming that these devices are damaged goods, the company wrote them off, destroying some items or selling them as waste. And the Bulgarian tax authorities decided that such actions were enough to trigger the reduction of the input tax.

Source: 1stopvat.com

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